Jawaharlal Nehru Port Authority’s Land Bill for Vadhvan Port Connectivity Jumps to ₹2,300 Crore

The authority, which is spearheading the development of the greenfield Vadhvan Port in Palghar district, requires 606 hectares of land to establish critical road and rail links. According to officials, around 60 per cent of the land has been valued at ₹62.5 lakh per hectare, while the remaining 40 per cent—primarily in six coastal villages near the port site—has been awarded compensation at ₹2.20 crore per hectare by the Palghar district collector.

Out of the 24 villages included in the acquisition plan, six villages located closer to the shoreline have received the higher compensation due to their proximity to the port and higher perceived land value. The remaining 18 villages have been compensated at ₹62.5 lakh per hectare.

Compensation Structure Under RFCTLARR Act; Project-affected persons (PAPs) will receive compensation at double the market value, along with;100% solatium (mandatory additional compensation), and An additional 12% interest on the base rate from August 29, 2024.

Under The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act), solatium is awarded to compensate landowners for compulsory acquisition, covering mental anguish, inconvenience, and emotional distress. It is calculated on the total market value including attached assets.

Officials attribute the sharp increase in acquisition costs to multiple factors: Revision in circle/guideline rates published by the Maharashtra government for Palghar. igher benchmark values due to increased land transactions in recent years.  Delay in the project timeline and Strong demand for land driven by expectations around Vadhvan’s transformation into a major port-led economic hub.

When the ₹800 crore estimate was initially prepared, there were limited land transactions in the area. The valuation was based on the prevailing circle rate of approximately ₹24 lakh per hectare at that time.

For comparison, land acquired earlier in Palghar for the Western Dedicated Freight Corridor and the Mumbai-Ahmedabad bullet train project was compensated at around ₹50 lakh per hectare—lower than the ₹62.5 lakh now being awarded for most villages under the Vadhvan project.

While the higher compensation will ease implementation challenges, officials acknowledged that it could slightly impact the project’s Internal Rate of Return (IRR). However, they emphasized that timely and dispute-free acquisition is critical for the smooth execution of the ₹76,220 crore mega port project.

“Completion of land acquisition ensures hassle-free implementation. Without road connectivity, reclamation, dredging, offshore protection bund, and breakwater construction cannot commence,” an official said.

Once road access is established, tender risks will reduce, leading to more competitive bids for major construction works. Higher risk, officials noted, would have been factored into contractor pricing.      Officials stated that land is now in the authority’s possession. Compensation is available for landowners to claim, failing which the amount will be deposited in court and possession taken as per legal provisions.

Calling land acquisition the “most critical” aspect of the project, JNPA Chairman Gaurav Dayal earlier indicated that the mandate was to offer the maximum permissible compensation to avoid delays.

With acquisition largely completed, the focus now shifts to fast-tracking connectivity works—considered essential for unlocking the full potential of the Vadhvan Port project and positioning it as one of India’s largest deep-draft ports.